In India’s ever-evolving landscape of Goods and Services Tax (GST) compliance, staying abreast of regulatory updates is paramount for businesses. Circular 170, issued by the GSTN (Goods and Services Tax Network), is a crucial update that has implications for your GST compliance and business operations.

Understanding Circular 170

Circular 170 introduces significant changes in the process of filing GSTR-3B, specifically focusing on the reporting of Input Tax Credit (ITC) availed, reversal reclaim, and ineligible ITC. This update necessitates businesses to adopt proactive measures to ensure accurate reporting and compliance with GST regulations.

Identifying Ineligible ITC

One of the key challenges with Circular 170 is the identification of ineligible ITCs. Incorrect reporting of ITC in Table 4 of GSTR-3B can lead to penalties and compliance issues. Therefore, businesses must implement robust mechanisms to identify and rectify ineligible ITC to mitigate risks.

Optimizing ITC Reconciliation

Effective reconciliation of GSTR-2B data with GSTR-3B is crucial for ensuring compliance with Circular 170. By leveraging advanced features offered by GSTHero, businesses can streamline the process of ITC reconciliation, thereby minimizing errors and ensuring accurate reporting.

Proactive Compliance Measures

To navigate the complexities introduced by Circular 170, businesses must adopt proactive compliance measures. This includes understanding the formula for calculating ineligible ITC, adhering to reversal reclaim processes under Table 4(B), and fulfilling crucial reporting requirements to avoid penalties.

3 Proven Solutions by GST Hero

We are thrilled to introduce our latest upgrades to the GST software: Invoice-level tracking for ITC claims, reversals, and reclaims within the framework of GSTR-3B. This feature has been designed to comply with the guidelines outlined in Circular No. 170/02/2022-GST.

Invoice-Level Tracking

Our Invoice-Level Tracking feature lets you gain granular control over your Input Tax Credit (ITC) transactions. Unlike traditional methods that aggregate ITC data, our solution allows you to track each invoice, enabling precise management of ITC claims, reversals, and reclaims. This level of detail allows you to identify discrepancies quickly, ensuring accurate reporting and compliance with Circular 170.

Compliance with Circular 170

Our software is meticulously designed to ensure seamless compliance with Circular 170 mandates. By providing the correct information on inter-state supplies and ITC as outlined in the circular, our solution safeguards your business against penalties and regulatory scrutiny. You can trust our system to align with the latest GST regulations, giving you peace of mind and confidence in your compliance efforts.

Auto-Populated Forms

We understand the importance of efficiency in your GST filing process. That’s why we’ve implemented auto-populated and editable FORM GSTR-3B and FORM GSTR-1 entries in our software. This automation not only saves you time but also reduces the risk of manual errors. With your forms pre-filled and ready for review, you can focus on strategic tasks, knowing that your compliance requirements are taken care of accurately.

Overall Business Impact

Our Circular 170 upgrade empowers businesses with reduced compliance risks, enhanced financial oversight, streamlined operations, and improved decision-making capabilities, ensuring sustainable growth and competitiveness.

Reduced Compliance Risks

Our feature significantly reduces your compliance risks by aligning with GST regulations and Circular 170 requirements. With accurate data tracking and reporting, you can avoid penalties and legal issues, safeguarding your business’s reputation and financial stability.

Enhanced Financial Oversight

Gain deeper insights into your tax liabilities and credit availability with our comprehensive tracking and reporting capabilities. Our solution provides real-time visibility into your financial data, empowering you to make informed decisions and optimize your tax strategy for maximum efficiency.

Streamlined Operations

Our software feature upgrade streamlines your GST compliance processes, saving you valuable time and resources. By automating tedious tasks and improving data accuracy, we eliminate the inefficiencies of manual processes, allowing you to focus on core business activities. With smoother operations, you can drive productivity and profitability while ensuring compliance with ease.

Enhanced Decision-Making

With our comprehensive tracking and reporting capabilities, our software equips you with valuable insights to make informed decisions. By accessing real-time data on your tax liabilities and credit availability, you can optimize your financial strategy, capitalize on opportunities, and mitigate risks effectively, leading to sustainable growth and competitiveness in the market.


As businesses navigate the complexities of GST compliance, our commitment at GST Hero remains unwavering. Our latest enhancements, meticulously crafted to comply with Circular 170 mandates, signify a leap forward in simplifying compliance processes and solidifying financial integrity.

At GST Hero, we believe that compliance should never be a burden but a catalyst for growth. As you embark on this journey of GST compliance, trust in our proven Circular 170 solutions to safeguard your business, enhance financial oversight, and drive strategic decision-making.


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